thanks for all your replies..@monalisa - I really like parra, had lived around the area, negative though is getting oversupply and rental is going to be soft for a while...
to me, sydney and melbourne are the safest bet in long term..
my thinking with sydney is that it will bounce back a bit with record low interest rate, and best is to get in before NG grandfathered (who knows)..
melbourne is still affordable to some extent compared to sydney especially in outer rings..
looks like melbourne is going to be the pick but have to look into that closely...

Hi guys, i'm looking in the same range as OP. Looking at 2x400 or so
However I will be a first home buyer, would the saving of $15 - 20k in stamp duty on a unit up to 550k in Sydney (as a owner occupier) outweigh an IP in Melbourne (which I think would be a better option)
Cheers

I just checked Albion and it looks really poor for houses being around 2 to 3%.

Click to expand...

Correct

Yields in melbourne are woeful

Suburbs that appear good value in the west such as ardeer, albion, laverton etc
Yiu can buy a house for $400k - $450k but only get $280 a week in rent
Doesnt really add up, maybe the demand isnt what the market perceives it to be?